Last week’s decision by the Fair Work Commission Annual Wage Review to award 4.75 per cent to modern award rates has sparked concern with NSW Farmers saying the decision will place significant additional pressure on farm employers. It claims that some horticulture operations facing up to a 6 per cent increase to their wages bill with the commission ruling that the lowest award classifications must be lifted to match the new National Minimum Wage of $26.44 per hour For horticulture employers with workers at base-level Horticulture Award classifications, this means an effective increase of close to 6 per cent from 1 July. NSW Farmers President Xavier Martin said the decision added to an already punishing cost environment for growers. "We have always supported fair wages for the people who work on our farms. That is not in question," Mr Martin said. "But a 6 per cent increase for many of our horticulture growers lands on top of fuel and fertiliser costs that have surged since the start of the year, energy prices that continue to climb, and a labour market where finding workers is already one of the biggest challenges in the industry. "For a fruit or vegetable grower running a seasonal workforce of 20 or 50 casuals, today's decision adds tens of thousands of dollars to the cost of getting produce from the paddock to the shelf. "Farmers cannot pass these costs on. The supermarkets set the price, not the grower. Every additional dollar in the wages bill comes directly out of a margin that is already under enormous strain." Mr Martin said the decision underlined the need to strengthen the Horticulture Code of Conduct to deliver real outcomes for producers. "If governments are going to mandate higher labour costs for growers, they need to ensure the supply chain is sharing the burden fairly. Right now, it isn't,” he said. "In developing the National Food Strategy, we urge the federal government to recognise that wage decisions do not land in isolation. “They compound alongside every other input cost increase our members are absorbing, and the people growing the food this country relies on need to be able to stay in business."
